Barclays Capital is hoping to entice potential bidders for Richard Desmond's four national newspapers with a prediction that their profits will almost double over the next two years.

The bank has put together a brief, two-page presentation in an effort to test out what sort of valuation the entrepreneur's Daily Express, Sunday Express, Daily Star and Daily Star Sunday titles might fetch, a copy of which has been seen by the Guardian.

While there is no official mandate for a sale – and with sources close to Desmond believe the likelihood of an actual deal going through to be minimal – the projections in the presentation from bankers Barclays Capital make for interesting reading.

The slim document predicts that underlying earnings before interest, tax, depreciation and amortisation will leap by more than 80% from £31.7m in 2010 to almost £60m in 2012. The earnings improvement would imply a jump in operating margin from 12.8% to 21.5% – although the figures exclude a £12m annual payment to the company's final salary pension scheme.

Desmond acquired the titles for £125m in 2000, but on 2010's results, they could easily attract a bid in excess of £200m. If the rate of profit growth is to be believed, then the valuation could be closer to £500m.

However, the bank's predictions only factor in a modest improvement in revenues of 4.6% in 2011 and 3.6% to 2012, taking total turnover to £267.6m. That factors in relatively flat advertising market over the next two years – ad revenues are forecast in the document to grow marginally to £95.6m

There is little explanation offered as to why the profits would improve sharply, although the document notes that the newspapers expects to see significant financial benefits in the order of £9m a year in reducing printing costs by moving the production of the titles – and perhaps the editorial functions as well – from London's Docklands to a new £100m "media city" in Luton.

Desmond has undertaken a programme of heavy cost-cutting to drive profitability since acquiring Express Newspapers from Lord Hollick's United News & Media in 2000, but has more recently turned attention to television, buying Channel 5 last summer for £103.5m. Earlier this week the broadcaster bought back Big Brother in a two year deal.

Industry observers are split over whether Desmond should look to sell. Some see it as an opportunity time to get out of a declining market. "He has cut and cut and played with pricing, he has done everything," said one source. "What else is there, it would be a good time to get out while there is plenty of value still there."

Others believe that a sale would work against Northern & Shell's strategy of maximising revenue by cross-selling advertising across its magazine, newspaper and television assets. A similar presentation is being circulated relating to Desmond's portfolio of magazines. Northern & Shell declined to comment.

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